Form N-CSRS NORTHERN LIGHTS FUND For: Mar 31
united
states
securities and exchange commission
washington, d.c. 20549
form n-csr
certified shareholder report of registered management
investment companies
Investment Company Act file number 811-22655
Northern Lights Fund Trust III
(Exact name of registrant as specified in charter)
225 Pictoria Drive, Suite 450, Cincinatti, OH 45246
(Address of principal executive offices) (Zip code)
Eric Kane, Gemini Fund Services
80 Arkay Drive, Suite 110 Hauppauge, NY 11788
(Name and address of agent for service)
Registrant's telephone number, including area code: 631-470-2688
Date of fiscal year end: 9/30
Date of reporting period: 3/31/22
Item 1. Reports to Stockholders.
Class I Shares – LSEIX |
Semi-Annual Report |
March 31, 2022 |
1-855-233-8300 |
www.persimmonfunds.com. |
Distributed by Northern Lights Distributors, LLC |
Member FINRA |
Persimmon Long/Short Fund |
Portfolio Review (Unaudited) |
March 31, 2022 |
The Funds performance figures* for the period ended March 31, 2022, as compared to its benchmark:
Annualized | ||||
Annualized | Since Inception | |||
Six Months | One Year | Five Years | (12/31/2012) | |
Persimmon Long Short Fund - Class I | 3.30% | 9.11% | 5.12% | 4.28% |
HFRX Equity Hedge Index ** | 2.35% | 8.92% | 4.23% | 3.88% |
S&P 500 Total Return Index *** | 5.92% | 15.65% | 15.99% | 15.55% |
* | The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated using the traded net asset value on March 31, 2022. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemptions of Fund shares. Returns greater than 1 year are annualized. The total annual gross operating expenses as stated in the fee table of the Funds prospectus dated February 1, 2022 are 2.06% for Class I Shares. Redemptions made within 60 days of purchase may be assessed a redemption fee of 1.00%. The Advisor has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until at least January 31, 2023, to ensure that Total Annual Fund Operating Expenses (exclusive of any front-end or contingent deferred loads, brokerage fees and commissions, acquired fund fees and expenses; borrowing costs (such as interest and dividend expenses on securities sold short); taxes; expenses incurred in connection with any merger or reorganization; and extraordinary expenses (such as litigation expenses, which may include indemnification of Fund officers and Trustees, and contractual indemnification of Fund service providers (other than the Advisor)) will not exceed 1.99% of the daily average net assets attributable to Class I shares. The Advisor may seek reimbursement only for fees waived or expenses paid by it during the prior three years; provided, however, that such fees and expenses may only be reimbursed to the extent they were waived or paid after the date of the waiver agreement (or any similar agreement). Reimbursements will only be sought if total expenses remain below the expenses limitation in place now or at the time of waiver or reimbursement. The Board may terminate this expense reimbursement arrangement at any time. For performance information current to the most recent month-end, please call 1-855-233-8300. |
** | HFRX Equity Hedge Index is a daily index of Long/Short Equity Hedge Fund Returns provided by Hedge Fund Research (hedgefundresearch.com). Index performance returns do not reflect any management fees, transaction costs or expenses. You cannot invest directly in an index. |
*** | The S&P 500 Total Return Index is an unmanaged composite of 500 large capitalization companies and includes the reinvestment of dividends. This index is widely used by professional investors as a performance benchmark for large-cap stocks. You cannot invest directly in an index. |
Asset Class | % of Net Assets | |||
Common Stocks | 89.1 | % | ||
Short-Term Investment | 6.0 | % | ||
Exchanged-Traded Fund | 2.7 | % | ||
Other Assets In Excess of Liabilities | 2.2 | % | ||
Total | 100.0 | % | ||
Please refer to the Schedule of Investments in this semi-annual report for a detailed listing of the Funds holdings. |
1
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% | ||||||||
ADVERTISING & MARKETING - 0.1% | ||||||||
383 | Interpublic Group of Companies, Inc. | $ | 13,577 | |||||
230 | Omnicom Group, Inc. | 19,523 | ||||||
33,100 | ||||||||
AEROSPACE & DEFENSE - 1.5% | ||||||||
558 | Boeing Company(a) | 106,857 | ||||||
240 | General Dynamics Corporation | 57,883 | ||||||
364 | Howmet Aerospace, Inc. | 13,082 | ||||||
48 | Huntington Ingalls Industries, Inc. | 9,573 | ||||||
234 | L3Harris Technologies, Inc. | 58,142 | ||||||
230 | Lockheed Martin Corporation | 101,522 | ||||||
174 | Northrop Grumman Corporation | 77,816 | ||||||
1,536 | Raytheon Technologies Corporation | 152,173 | ||||||
45 | Teledyne Technologies, Inc.(a) | 21,268 | ||||||
253 | Textron, Inc. | 18,818 | ||||||
46 | TransDigm Group, Inc.(a) | 29,971 | ||||||
647,105 | ||||||||
APPAREL & TEXTILE PRODUCTS - 0.5% | ||||||||
340 | Hanesbrands, Inc. | 5,063 | ||||||
1,239 | NIKE, Inc., Class B | 166,719 | ||||||
75 | PVH Corporation | 5,746 | ||||||
52 | Ralph Lauren Corporation | 5,899 | ||||||
310 | Tapestry, Inc. | 11,517 | ||||||
234 | Under Armour, Inc., Class A(a) | 3,983 | ||||||
244 | Under Armour, Inc., Class C(a) | 3,797 | ||||||
344 | VF Corporation | 19,559 | ||||||
222,283 | ||||||||
ASSET MANAGEMENT - 0.7% | ||||||||
109 | Ameriprise Financial, Inc. | 32,739 | ||||||
120 | BlackRock, Inc. | 91,700 | ||||||
1,157 | Charles Schwab Corporation (The) | 97,547 | ||||||
264 | Franklin Resources, Inc. | 7,371 | ||||||
392 | Invesco Ltd. | 9,040 | ||||||
186 | Raymond James Financial, Inc. | 20,443 |
See accompanying notes to financial statements.
2
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
ASSET MANAGEMENT - 0.7% (Continued) | ||||||||
217 | T Rowe Price Group, Inc. | $ | 32,808 | |||||
291,648 | ||||||||
AUTOMOTIVE - 2.3% | ||||||||
235 | Aptiv plc(a) | 28,132 | ||||||
198 | BorgWarner, Inc. | 7,702 | ||||||
3,772 | Ford Motor Company | 63,785 | ||||||
1,149 | General Motors Company(a) | 50,257 | ||||||
765 | Tesla, Inc.(a) | 824,365 | ||||||
974,241 | ||||||||
BANKING - 3.5% | ||||||||
7,503 | Bank of America Corporation | 309,273 | ||||||
2,039 | Citigroup, Inc. | 108,883 | ||||||
442 | Citizens Financial Group, Inc. | 20,036 | ||||||
147 | Comerica, Inc. | 13,293 | ||||||
730 | Fifth Third Bancorp | 31,419 | ||||||
183 | First Republic Bank | 29,664 | ||||||
1,082 | Huntington Bancshares, Inc. | 15,819 | ||||||
2,980 | JPMorgan Chase & Company | 406,233 | ||||||
1,054 | KeyCorporation | 23,589 | ||||||
139 | M&T Bank Corporation | 23,561 | ||||||
471 | Peoples United Financial, Inc. | 9,415 | ||||||
442 | PNC Financial Services Group, Inc. (The) | 81,527 | ||||||
975 | Regions Financial Corporation | 21,704 | ||||||
49 | SVB Financial Group(a) | 27,413 | ||||||
1,321 | Truist Financial Corporation | 74,901 | ||||||
1,389 | US Bancorp | 73,825 | ||||||
3,798 | Wells Fargo & Company | 184,051 | ||||||
173 | Zions Bancorp | 11,342 | ||||||
1,465,948 | ||||||||
BEVERAGES - 1.3% | ||||||||
175 | Brown-Forman Corporation, Class B | 11,729 | ||||||
3,879 | Coca-Cola Company (The) | 240,497 | ||||||
162 | Constellation Brands, Inc., Class A | 37,312 | ||||||
179 | Molson Coors Beverage Company, Class B | 9,555 |
See accompanying notes to financial statements.
3
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
BEVERAGES - 1.3% (Continued) | ||||||||
395 | Monster Beverage Corporation(a) | $ | 31,561 | |||||
1,355 | PepsiCo, Inc. | 226,800 | ||||||
557,454 | ||||||||
BIOTECH & PHARMA - 5.1% | ||||||||
1,693 | AbbVie, Inc. | 274,452 | ||||||
577 | Amgen, Inc. | 139,530 | ||||||
452 | AstraZeneca plc - ADR | 29,986 | ||||||
155 | Biogen, Inc.(a) | 32,643 | ||||||
2,195 | Bristol-Myers Squibb Company | 160,301 | ||||||
762 | Eli Lilly & Company | 218,214 | ||||||
1,166 | Gilead Sciences, Inc. | 69,319 | ||||||
232 | Incyte Corporation(a) | 18,425 | ||||||
2,708 | Johnson & Johnson | 479,939 | ||||||
2,403 | Merck & Company, Inc. | 197,166 | ||||||
240 | Organon & Company | 8,383 | ||||||
136 | Perrigo Company plc | 5,226 | ||||||
5,243 | Pfizer, Inc. | 271,430 | ||||||
80 | Regeneron Pharmaceuticals, Inc.(a) | 55,874 | ||||||
258 | Vertex Pharmaceuticals, Inc.(a) | 67,330 | ||||||
718 | Viatris, Inc. | 7,812 | ||||||
359 | Zoetis, Inc. | 67,704 | ||||||
2,103,734 | ||||||||
CABLE & SATELLITE - 0.7% | ||||||||
140 | Charter Communications, Inc., Class A(a) | 76,373 | ||||||
4,450 | Comcast Corporation, Class A | 208,349 | ||||||
216 | DISH Network Corporation, Class A(a) | 6,836 | ||||||
291,558 | ||||||||
CHEMICALS - 1.6% | ||||||||
224 | Air Products and Chemicals, Inc. | 55,980 | ||||||
103 | Albemarle Corporation | 22,778 | ||||||
92 | Avery Dennison Corporation | 16,005 | ||||||
119 | Celanese Corporation | 17,002 | ||||||
239 | CF Industries Holdings, Inc. | 24,631 | ||||||
764 | Corteva, Inc. | 43,915 |
See accompanying notes to financial statements.
4
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
CHEMICALS - 1.6% (Continued) | ||||||||
723 | Dow, Inc. | $ | 46,070 | |||||
676 | DuPont de Nemours, Inc. | 49,740 | ||||||
126 | Eastman Chemical Company | 14,120 | ||||||
244 | Ecolab, Inc. | 43,081 | ||||||
132 | FMC Corporation | 17,367 | ||||||
101 | International Flavors & Fragrances, Inc. | 13,264 | ||||||
506 | Linde PLC | 161,631 | ||||||
228 | LyondellBasell Industries N.V., Class A | 23,443 | ||||||
362 | Mosaic Company (The) | 24,073 | ||||||
241 | PPG Industries, Inc. | 31,588 | ||||||
252 | Sherwin-Williams Company (The) | 62,904 | ||||||
667,592 | ||||||||
COMMERCIAL SUPPORT SERVICES - 0.3% | ||||||||
74 | Cintas Corporation | 31,478 | ||||||
211 | Republic Services, Inc. | 27,958 | ||||||
114 | Robert Half International, Inc. | 13,017 | ||||||
210 | Rollins, Inc. | 7,361 | ||||||
410 | Waste Management, Inc. | 64,984 | ||||||
144,798 | ||||||||
CONSTRUCTION MATERIALS - 0.1% | ||||||||
67 | Martin Marietta Materials, Inc. | 25,788 | ||||||
143 | Vulcan Materials Company | 26,269 | ||||||
52,057 | ||||||||
CONTAINERS & PACKAGING - 0.3% | ||||||||
1,530 | Amcor plc | 17,335 | ||||||
345 | Ball Corporation | 31,050 | ||||||
392 | International Paper Company | 18,091 | ||||||
94 | Packaging Corporation of America | 14,674 | ||||||
158 | Sealed Air Corporation | 10,580 | ||||||
314 | Westrock Company | 14,767 | ||||||
106,497 | ||||||||
DATA CENTER REIT - 0.2% | ||||||||
206 | Digital Realty Trust, Inc. | 29,211 |
See accompanying notes to financial statements.
5
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
DATA CENTER REIT - 0.2% (Continued) | ||||||||
82 | Equinix, Inc. | $ | 60,812 | |||||
90,023 | ||||||||
DIVERSIFIED INDUSTRIALS - 1.3% | ||||||||
582 | 3M Company | 86,648 | ||||||
151 | Dover Corporation | 23,692 | ||||||
364 | Eaton Corp PLC | 55,241 | ||||||
611 | Emerson Electric Company | 59,909 | ||||||
1,155 | General Electric Company | 105,683 | ||||||
728 | Honeywell International, Inc. | 141,654 | ||||||
296 | Illinois Tool Works, Inc. | 61,982 | ||||||
154 | Pentair plc | 8,348 | ||||||
543,157 | ||||||||
E-COMMERCE DISCRETIONARY - 3.4% | ||||||||
415 | Amazon.com, Inc.(a) | 1,352,880 | ||||||
740 | eBay, Inc. | 42,372 | ||||||
120 | Etsy, Inc.(a) | 14,914 | ||||||
1,410,166 | ||||||||
ELECTRIC UTILITIES - 2.4% | ||||||||
691 | AES Corporation (The) | 17,779 | ||||||
279 | Alliant Energy Corporation | 17,432 | ||||||
277 | Ameren Corporation | 25,972 | ||||||
540 | American Electric Power Company, Inc. | 53,876 | ||||||
521 | CenterPoint Energy, Inc. | 15,963 | ||||||
327 | CMS Energy Corporation | 22,870 | ||||||
298 | Consolidated Edison, Inc. | 28,215 | ||||||
341 | Constellation Energy Corporation | 19,181 | ||||||
745 | Dominion Energy, Inc. | 63,303 | ||||||
204 | DTE Energy Company | 26,971 | ||||||
685 | Duke Energy Corporation | 76,487 | ||||||
399 | Edison International | 27,970 | ||||||
214 | Entergy Corporation | 24,985 | ||||||
241 | Evergy, Inc. | 16,470 | ||||||
382 | Eversource Energy | 33,689 | ||||||
1,024 | Exelon Corporation | 48,773 |
See accompanying notes to financial statements.
6
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
ELECTRIC UTILITIES - 2.4% (Continued) | ||||||||
621 | FirstEnergy Corporation | $ | 28,479 | |||||
1,908 | NextEra Energy, Inc. | 161,626 | ||||||
238 | NRG Energy, Inc. | 9,130 | ||||||
108 | Pinnacle West Capital Corporation | 8,435 | ||||||
815 | PPL Corporation | 23,276 | ||||||
561 | Public Service Enterprise Group, Inc. | 39,270 | ||||||
311 | Sempra Energy | 52,285 | ||||||
1,131 | Southern Company (The) | 82,008 | ||||||
346 | WEC Energy Group, Inc. | 34,534 | ||||||
574 | Xcel Energy, Inc. | 41,426 | ||||||
1,000,405 | ||||||||
ELECTRICAL EQUIPMENT - 1.0% | ||||||||
140 | A O Smith Corporation | 8,945 | ||||||
96 | Allegion plc | 10,539 | ||||||
218 | AMETEK, Inc. | 29,033 | ||||||
584 | Amphenol Corporation, Class A | 44,004 | ||||||
729 | Carrier Global Corporation | 33,439 | ||||||
316 | Fortive Corporation | 19,254 | ||||||
810 | Johnson Controls International plc | 53,112 | ||||||
193 | Keysight Technologies, Inc.(a) | 30,488 | ||||||
397 | Otis Worldwide Corporation | 30,549 | ||||||
103 | Rockwell Automation, Inc. | 28,843 | ||||||
95 | Roper Technologies, Inc. | 44,862 | ||||||
321 | TE Connectivity Ltd. | 42,045 | ||||||
249 | Trane Technologies plc | 38,022 | ||||||
126 | Vontier Corporation | 3,199 | ||||||
416,334 | ||||||||
ENGINEERING & CONSTRUCTION - 0.1% | ||||||||
134 | Jacobs Engineering Group, Inc. | 18,467 | ||||||
155 | Quanta Services, Inc. | 20,399 | ||||||
86 | Technip Energies N.V. - ADR(a) | 1,041 | ||||||
39,907 | ||||||||
ENTERTAINMENT CONTENT - 1.0% | ||||||||
831 | Activision Blizzard, Inc. | 66,571 |
See accompanying notes to financial statements.
7
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
ENTERTAINMENT CONTENT - 1.0% (Continued) | ||||||||
163 | Discovery, Inc. - Series A(a) | $ | 4,062 | |||||
352 | Discovery, Inc. - Series C(a) | 8,789 | ||||||
319 | Electronic Arts, Inc. | 40,357 | ||||||
339 | Fox Corporation, Class A | 13,374 | ||||||
154 | Fox Corporation - Class B | 5,587 | ||||||
122 | Take-Two Interactive Software, Inc.(a) | 18,756 | ||||||
459 | ViacomCBS, Inc., Class B | 17,355 | ||||||
1,908 | Walt Disney Company (The)(a) | 261,702 | ||||||
436,553 | ||||||||
FOOD - 0.8% | ||||||||
177 | Campbell Soup Company | 7,889 | ||||||
524 | Conagra Brands, Inc. | 17,591 | ||||||
649 | General Mills, Inc. | 43,950 | ||||||
168 | Hershey Company (The) | 36,394 | ||||||
279 | Hormel Foods Corporation | 14,380 | ||||||
118 | J M Smucker Company (The) | 15,978 | ||||||
269 | Kellogg Company | 17,348 | ||||||
635 | Kraft Heinz Company (The) | 25,013 | ||||||
139 | Lamb Weston Holdings, Inc. | 8,327 | ||||||
262 | McCormick & Company, Inc. | 26,148 | ||||||
1,397 | Mondelez International, Inc., Class A | 87,703 | ||||||
321 | Tyson Foods, Inc., Class A | 28,771 | ||||||
329,492 | ||||||||
FORESTRY, PAPER & WOOD PRODUCTS - 0.0%(b) | ||||||||
35 | Sylvamo Corporation(a) | 1,165 | ||||||
GAS & WATER UTILITIES - 0.1% | ||||||||
201 | American Water Works Company, Inc. | 33,271 | ||||||
132 | Atmos Energy Corporation | 15,773 | ||||||
372 | NiSource, Inc. | 11,830 | ||||||
60,874 | ||||||||
HEALTH CARE FACILITIES & SERVICES - 2.9% | ||||||||
157 | AmerisourceBergen Corporation | 24,289 | ||||||
252 | Anthem, Inc. | 123,787 |
See accompanying notes to financial statements.
8
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
HEALTH CARE FACILITIES & SERVICES - 2.9% (Continued) | ||||||||
291 | Cardinal Health, Inc. | $ | 16,500 | |||||
164 | Catalent, Inc.(a) | 18,188 | ||||||
657 | Centene Corporation(a) | 55,313 | ||||||
325 | Cigna Corporation | 77,873 | ||||||
1,386 | CVS Health Corporation | 140,277 | ||||||
88 | DaVita, Inc.(a) | 9,954 | ||||||
257 | HCA Healthcare, Inc. | 64,409 | ||||||
142 | Henry Schein, Inc.(a) | 12,381 | ||||||
135 | Humana, Inc. | 58,748 | ||||||
174 | IQVIA Holdings, Inc.(a) | 40,231 | ||||||
95 | Laboratory Corp of America Holdings(a) | 25,048 | ||||||
190 | McKesson Corporation | 58,165 | ||||||
130 | Quest Diagnostics, Inc. | 17,792 | ||||||
918 | UnitedHealth Group, Inc. | 468,152 | ||||||
76 | Universal Health Services, Inc., Class B | 11,016 | ||||||
1,222,123 | ||||||||
HEALTH CARE REIT - 0.2% | ||||||||
527 | Healthpeak Properties, Inc. | 18,092 | ||||||
373 | Ventas, Inc. | 23,036 | ||||||
410 | Welltower, Inc. | 39,417 | ||||||
80,545 | ||||||||
HOME & OFFICE PRODUCTS - 0.1% | ||||||||
137 | Leggett & Platt, Inc. | 4,768 | ||||||
421 | Newell Brands, Inc. | 9,014 | ||||||
58 | Whirlpool Corporation | 10,020 | ||||||
23,802 | ||||||||
HOME CONSTRUCTION - 0.2% | ||||||||
274 | DR Horton, Inc. | 20,415 | ||||||
109 | Fortune Brands Home & Security, Inc. | 8,097 | ||||||
287 | Lennar Corporation, Class A | 23,295 | ||||||
287 | Masco Corporation | 14,637 | ||||||
64 | Mohawk Industries, Inc.(a) | 7,949 | ||||||
3 | NVR, Inc.(a) | 13,402 |
See accompanying notes to financial statements.
9
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
HOME CONSTRUCTION - 0.2% (Continued) | ||||||||
213 | PulteGroup, Inc. | $ | 8,925 | |||||
96,720 | ||||||||
HOTEL REITS - 0.0%(b) | ||||||||
699 | Host Hotels & Resorts, Inc. | 13,582 | ||||||
HOUSEHOLD PRODUCTS - 1.4% | ||||||||
272 | Church & Dwight Company, Inc. | 27,031 | ||||||
139 | Clorox Company (The) | 19,325 | ||||||
826 | Colgate-Palmolive Company | 62,636 | ||||||
222 | Estee Lauder Companies, Inc. (The), Class A | 60,455 | ||||||
314 | Kimberly-Clark Corporation | 38,672 | ||||||
2,385 | Procter & Gamble Company (The) | 364,428 | ||||||
572,547 | ||||||||
INDUSTRIAL REIT - 0.3% | ||||||||
364 | Duke Realty Corporation | 21,134 | ||||||
694 | Prologis, Inc. | 112,066 | ||||||
133,200 | ||||||||
INDUSTRIAL SUPPORT SERVICES - 0.2% | ||||||||
550 | Fastenal Company | 32,670 | ||||||
66 | United Rentals, Inc.(a) | 23,444 | ||||||
41 | WW Grainger, Inc. | 21,147 | ||||||
77,261 | ||||||||
INFRASTRUCTURE REIT - 0.5% | ||||||||
408 | American Tower Corporation | 102,497 | ||||||
401 | Crown Castle International Corporation | 74,025 | ||||||
110 | SBA Communications Corporation | 37,851 | ||||||
214,373 | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 1.3% | ||||||||
922 | Bank of New York Mellon Corporation (The) | 45,759 | ||||||
118 | Cboe Global Markets, Inc. | 13,502 | ||||||
387 | CME Group, Inc. | 92,052 | ||||||
326 | Goldman Sachs Group, Inc. (The) | 107,613 | ||||||
588 | Intercontinental Exchange, Inc. | 77,687 | ||||||
1,418 | Morgan Stanley | 123,932 |
See accompanying notes to financial statements.
10
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 1.3% (Continued) | ||||||||
117 | Nasdaq, Inc. | $ | 20,849 | |||||
231 | Northern Trust Corporation | 26,900 | ||||||
384 | State Street Corporation | 33,454 | ||||||
541,748 | ||||||||
INSURANCE - 3.8% | ||||||||
795 | Aflac, Inc. | 51,190 | ||||||
356 | Allstate Corporation (The) | 49,310 | ||||||
753 | American International Group, Inc. | 47,266 | ||||||
220 | Aon plc, Class A | 71,639 | ||||||
164 | Arthur J Gallagher & Company | 28,634 | ||||||
67 | Assurant, Inc. | 12,183 | ||||||
2,072 | Berkshire Hathaway, Inc., Class B(a) | 731,230 | ||||||
464 | Chubb Ltd. | 99,250 | ||||||
237 | Cincinnati Financial Corporation | 32,223 | ||||||
38 | Everest Re Group Ltd. | 11,452 | ||||||
111 | Globe Life, Inc. | 11,167 | ||||||
396 | Hartford Financial Services Group, Inc. (The) | 28,437 | ||||||
173 | Lincoln National Corporation | 11,307 | ||||||
259 | Loews Corporation | 16,788 | ||||||
532 | Marsh & McLennan Companies, Inc. | 90,663 | ||||||
806 | MetLife, Inc. | 56,646 | ||||||
227 | Principal Financial Group, Inc. | 16,664 | ||||||
652 | Progressive Corporation (The) | 74,321 | ||||||
407 | Prudential Financial, Inc. | 48,095 | ||||||
293 | Travelers Companies, Inc. (The) | 53,540 | ||||||
226 | Unum Group | 7,121 | ||||||
219 | W R Berkley Corporation | 14,583 | ||||||
134 | Willis Towers Watson plc | 31,653 | ||||||
1,595,362 | ||||||||
INTERNET MEDIA & SERVICES - 5.8% | ||||||||
284 | Alphabet, Inc., Class A(a) | 789,904 | ||||||
273 | Alphabet, Inc., Class C(a) | 762,487 | ||||||
41 | Booking Holdings, Inc.(a) | 96,286 | ||||||
121 | Expedia Group, Inc.(a) | 23,676 |
See accompanying notes to financial statements.
11
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
INTERNET MEDIA & SERVICES - 5.8% (Continued) | ||||||||
2,304 | Meta Platforms, Inc., Class A(a) | $ | 512,317 | |||||
463 | Netflix, Inc.(a) | 173,435 | ||||||
730 | Twitter, Inc.(a) | 28,244 | ||||||
96 | VeriSign, Inc.(a) | 21,356 | ||||||
2,407,705 | ||||||||
LEISURE FACILITIES & SERVICES - 1.3% | ||||||||
369 | Carnival Corporation(a) | 7,461 | ||||||
23 | Chipotle Mexican Grill, Inc.(a) | 36,387 | ||||||
113 | Darden Restaurants, Inc. | 15,023 | ||||||
38 | Dominos Pizza, Inc. | 15,466 | ||||||
284 | Hilton Worldwide Holdings, Inc.(a) | 43,094 | ||||||
343 | Las Vegas Sands Corporation(a) | 13,332 | ||||||
127 | Live Nation Entertainment, Inc.(a) | 14,940 | ||||||
258 | Marriott International, Inc., Class A(a) | 45,344 | ||||||
707 | McDonalds Corporation | 174,827 | ||||||
475 | MGM Resorts International | 19,922 | ||||||
210 | Norwegian Cruise Line Holdings Ltd.(a) | 4,595 | ||||||
166 | Royal Caribbean Cruises Ltd.(a) | 13,907 | ||||||
1,246 | Starbucks Corporation | 113,349 | ||||||
92 | Wynn Resorts Ltd.(a) | 7,336 | ||||||
319 | Yum! Brands, Inc. | 37,811 | ||||||
562,794 | ||||||||
LEISURE PRODUCTS - 0.0%(b) | ||||||||
146 | Hasbro, Inc. | 11,960 | ||||||
MACHINERY - 0.9% | ||||||||
581 | Caterpillar, Inc. | 129,458 | ||||||
323 | Deere & Company | 134,195 | ||||||
140 | Flowserve Corporation | 5,026 | ||||||
73 | IDEX Corporation | 13,996 | ||||||
342 | Ingersoll Rand, Inc. | 17,220 | ||||||
109 | Parker-Hannifin Corporation | 30,930 | ||||||
51 | Snap-on, Inc. | 10,479 | ||||||
136 | Stanley Black & Decker, Inc. | 19,011 |
See accompanying notes to financial statements.
12
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
MACHINERY - 0.9% (Continued) | ||||||||
186 | Xylem, Inc. | $ | 15,858 | |||||
376,173 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 4.0% | ||||||||
1,715 | Abbott Laboratories | 202,987 | ||||||
44 | ABIOMED, Inc.(a) | 14,575 | ||||||
299 | Agilent Technologies, Inc. | 39,567 | ||||||
70 | Align Technology, Inc.(a) | 30,520 | ||||||
487 | Baxter International, Inc. | 37,762 | ||||||
297 | Becton Dickinson and Company | 79,002 | ||||||
21 | Bio-Rad Laboratories, Inc., Class A(a) | 11,828 | ||||||
1,472 | Boston Scientific Corporation(a) | 65,195 | ||||||
48 | Cooper Companies, Inc. | 20,044 | ||||||
615 | Danaher Corporation | 180,398 | ||||||
214 | Dentsply Sirona, Inc. | 10,533 | ||||||
94 | DexCom, Inc.(a) | 48,090 | ||||||
681 | Edwards Lifesciences Corporation(a) | 80,167 | ||||||
249 | Hologic, Inc.(a) | 19,128 | ||||||
79 | IDEXX Laboratories, Inc.(a) | 43,218 | ||||||
157 | Illumina, Inc.(a) | 54,856 | ||||||
342 | Intuitive Surgical, Inc.(a) | 103,175 | ||||||
1,329 | Medtronic plc | 147,453 | ||||||
23 | Mettler-Toledo International, Inc.(a) | 31,583 | ||||||
111 | PerkinElmer, Inc. | 19,365 | ||||||
139 | ResMed, Inc. | 33,709 | ||||||
83 | STERIS plc | 20,067 | ||||||
335 | Stryker Corporation | 89,562 | ||||||
45 | Teleflex, Inc. | 15,967 | ||||||
395 | Thermo Fisher Scientific, Inc. | 233,306 | ||||||
61 | Waters Corporation(a) | 18,934 | ||||||
74 | West Pharmaceutical Services, Inc. | 30,393 | ||||||
204 | Zimmer Biomet Holdings, Inc. | 26,092 | ||||||
20 | Zimvie, Inc.(a) | 457 | ||||||
1,707,933 |
See accompanying notes to financial statements.
13
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
METALS & MINING - 0.3% | ||||||||
1,337 | Freeport-McMoRan, Inc. | $ | 66,502 | |||||
880 | Newmont Corporation | 69,916 | ||||||
136,418 | ||||||||
MULTI ASSET CLASS REIT - 0.0%(b) | ||||||||
154 | Vornado Realty Trust | 6,979 | ||||||
OFFICE REIT - 0.1% | ||||||||
118 | Alexandria Real Estate Equities, Inc. | 23,748 | ||||||
139 | Boston Properties, Inc. | 17,903 | ||||||
32 | Orion Office REIT, Inc. | 448 | ||||||
68 | SL Green Realty Corporation | 5,520 | ||||||
47,619 | ||||||||
OIL & GAS PRODUCERS - 3.1% | ||||||||
372 | APA Corporation | 15,375 | ||||||
1,850 | Chevron Corporation | 301,235 | ||||||
1,271 | ConocoPhillips | 127,099 | ||||||
411 | Coterra Energy, Inc. | 11,085 | ||||||
376 | Devon Energy Corporation | 22,233 | ||||||
160 | Diamondback Energy, Inc. | 21,933 | ||||||
102 | DT Midstream, Inc. | 5,535 | ||||||
573 | EOG Resources, Inc. | 68,319 | ||||||
4,422 | Exxon Mobil Corporation | 365,212 | ||||||
270 | Hess Corporation | 28,901 | ||||||
152 | HF Sinclair Corporation(a) | 6,057 | ||||||
1,871 | Kinder Morgan, Inc. | 35,381 | ||||||
777 | Marathon Oil Corporation | 19,510 | ||||||
637 | Marathon Petroleum Corporation | 54,464 | ||||||
850 | Occidental Petroleum Corporation | 48,229 | ||||||
436 | ONEOK, Inc. | 30,795 | ||||||
424 | Phillips 66 | 36,629 | ||||||
162 | Pioneer Natural Resources Company | 40,505 | ||||||
398 | Valero Energy Corporation | 40,413 | ||||||
1,200 | Williams Companies, Inc. (The) | 40,092 | ||||||
1,319,002 |
See accompanying notes to financial statements.
14
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 0.3% | ||||||||
649 | Baker Hughes Company | $ | 23,630 | |||||
865 | Halliburton Company | 32,758 | ||||||
390 | NOV, Inc. | 7,648 | ||||||
1,377 | Schlumberger N.V. | 56,884 | ||||||
431 | TechnipFMC plc(a) | 3,340 | ||||||
124,260 | ||||||||
PUBLISHING & BROADCASTING - 0.0%(b) | ||||||||
306 | News Corporation, Class A | 6,777 | ||||||
101 | News Corporation, Class B | 2,275 | ||||||
9,052 | ||||||||
REAL ESTATE SERVICES - 0.1% | ||||||||
330 | CBRE Group, Inc., Class A(a) | 30,202 | ||||||
RESIDENTIAL REIT - 0.4% | ||||||||
137 | AvalonBay Communities, Inc. | 34,027 | ||||||
334 | Equity Residential | 30,033 | ||||||
64 | Essex Property Trust, Inc. | 22,111 | ||||||
117 | Mid-America Apartment Communities, Inc. | 24,506 | ||||||
311 | UDR, Inc. | 17,842 | ||||||
128,519 | ||||||||
RETAIL - CONSUMER STAPLES - 1.6% | ||||||||
392 | Costco Wholesale Corporation | 225,733 | ||||||
225 | Dollar General Corporation | 50,092 | ||||||
247 | Dollar Tree, Inc.(a) | 39,557 | ||||||
900 | Kroger Company (The) | 51,633 | ||||||
455 | Target Corporation | 96,560 | ||||||
881 | Walgreens Boots Alliance, Inc. | 39,442 | ||||||
1,263 | Walmart, Inc. | 188,086 | ||||||
691,103 | ||||||||
RETAIL - DISCRETIONARY - 1.9% | ||||||||
63 | Advance Auto Parts, Inc. | 13,038 | ||||||
23 | AutoZone, Inc.(a) | 47,025 | ||||||
216 | Bath & Body Works, Inc. | 10,325 | ||||||
213 | Best Buy Company, Inc. | 19,362 |
See accompanying notes to financial statements.
15
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
RETAIL - DISCRETIONARY - 1.9% (Continued) | ||||||||
152 | CarMax, Inc.(a) | $ | 14,665 | |||||
226 | Gap, Inc. (The) | 3,182 | ||||||
149 | Genuine Parts Company | 18,777 | ||||||
1,006 | Home Depot, Inc. (The) | 301,126 | ||||||
767 | Lowes Companies, Inc. | 155,080 | ||||||
75 | OReilly Automotive, Inc.(a) | 51,372 | ||||||
356 | Ross Stores, Inc. | 32,204 | ||||||
1,188 | TJX Companies, Inc. (The) | 71,969 | ||||||
114 | Tractor Supply Company | 26,604 | ||||||
61 | Ulta Beauty, Inc.(a) | 24,291 | ||||||
72 | Victorias Secret & Company(a) | 3,698 | ||||||
792,718 | ||||||||
RETAIL REIT - 0.2% | ||||||||
69 | Federal Realty Investment Trust | 8,423 | ||||||
425 | Kimco Realty Corporation | 10,498 | ||||||
329 | Realty Income Corporation | 22,800 | ||||||
155 | Regency Centers Corporation | 11,058 | ||||||
323 | Simon Property Group, Inc. | 42,494 | ||||||
95,273 | ||||||||
SELF-STORAGE REIT - 0.2% | ||||||||
123 | Extra Space Storage, Inc. | 25,289 | ||||||
151 | Public Storage | 58,932 | ||||||
84,221 | ||||||||
SEMICONDUCTORS - 4.8% | ||||||||
909 | Advanced Micro Devices, Inc.(a) | 99,390 | ||||||
531 | Analog Devices, Inc. | 87,711 | ||||||
984 | Applied Materials, Inc. | 129,691 | ||||||
410 | Broadcom, Inc. | 258,169 | ||||||
3,816 | Intel Corporation | 189,121 | ||||||
37 | IPG Photonics Corporation(a) | 4,061 | ||||||
153 | KLA Corporation | 56,007 | ||||||
135 | Lam Research Corporation | 72,577 | ||||||
432 | Microchip Technology, Inc. | 32,460 | ||||||
942 | Micron Technology, Inc. | 73,372 |
See accompanying notes to financial statements.
16
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
SEMICONDUCTORS - 4.8% (Continued) | ||||||||
2,356 | NVIDIA Corporation | $ | 642,859 | |||||
111 | Qorvo, Inc.(a) | 13,775 | ||||||
1,140 | QUALCOMM, Inc. | 174,215 | ||||||
161 | Skyworks Solutions, Inc. | 21,458 | ||||||
161 | Teradyne, Inc. | 19,035 | ||||||
899 | Texas Instruments, Inc. | 164,949 | ||||||
2,038,850 | ||||||||
SOFTWARE - 7.9% | ||||||||
441 | Adobe, Inc.(a) | 200,928 | ||||||
150 | Akamai Technologies, Inc.(a) | 17,909 | ||||||
83 | ANSYS, Inc.(a) | 26,365 | ||||||
224 | Autodesk, Inc.(a) | 48,014 | ||||||
261 | Cadence Design Systems, Inc.(a) | 42,924 | ||||||
303 | Cerner Corporation | 28,349 | ||||||
121 | Citrix Systems, Inc. | 12,209 | ||||||
130 | Fortinet, Inc.(a) | 44,426 | ||||||
246 | Intuit, Inc. | 118,287 | ||||||
7,444 | Microsoft Corporation | 2,295,059 | ||||||
581 | NortonLifeLock, Inc. | 15,408 | ||||||
2,082 | Oracle Corporation | 172,244 | ||||||
771 | Salesforce, Inc.(a) | 163,699 | ||||||
169 | ServiceNow, Inc.(a) | 94,114 | ||||||
135 | Synopsys, Inc.(a) | 44,991 | ||||||
40 | Tyler Technologies, Inc.(a) | 17,796 | ||||||
3,342,722 | ||||||||
SPECIALTY FINANCE - 0.5% | ||||||||
643 | American Express Company | 120,242 | ||||||
431 | Capital One Financial Corporation | 56,586 | ||||||
286 | Discover Financial Services | 31,514 | ||||||
541 | Synchrony Financial | 18,832 | ||||||
227,174 | ||||||||
SPECIALTY REITS - 0.0%(b) | ||||||||
316 | Iron Mountain, Inc. | 17,510 |
See accompanying notes to financial statements.
17
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
STEEL - 0.1% | ||||||||
304 | Nucor Corporation | $ | 45,190 | |||||
TECHNOLOGY HARDWARE - 8.0% | ||||||||
16,418 | Apple, Inc. | 2,866,747 | ||||||
204 | Arista Networks, Inc.(a) | 28,352 | ||||||
4,461 | Cisco Systems, Inc. | 248,745 | ||||||
752 | Corning, Inc. | 27,756 | ||||||
61 | F5, Inc.(a) | 12,746 | ||||||
149 | Garmin Ltd. | 17,673 | ||||||
1,288 | Hewlett Packard Enterprise Company | 21,522 | ||||||
1,352 | HP, Inc. | 49,078 | ||||||
342 | Juniper Networks, Inc. | 12,709 | ||||||
161 | Motorola Solutions, Inc. | 38,994 | ||||||
217 | NetApp, Inc. | 18,011 | ||||||
217 | Seagate Technology Holdings plc | 19,508 | ||||||
302 | Western Digital Corporation(a) | 14,994 | ||||||
165 | Xerox Holdings Corporation | 3,328 | ||||||
51 | Zebra Technologies Corporation, Class A(a) | 21,099 | ||||||
3,401,262 | ||||||||
TECHNOLOGY SERVICES - 4.5% | ||||||||
643 | Accenture plc, Class A | 216,840 | ||||||
435 | Automatic Data Processing, Inc. | 98,980 | ||||||
115 | Broadridge Financial Solutions, Inc. | 17,907 | ||||||
142 | CDW Corporation | 25,402 | ||||||
524 | Cognizant Technology Solutions Corporation, Class A | 46,987 | ||||||
249 | DXC Technology Company(a) | 8,125 | ||||||
114 | Equifax, Inc. | 27,029 | ||||||
615 | Fidelity National Information Services, Inc. | 61,758 | ||||||
568 | Fiserv, Inc.(a) | 57,595 | ||||||
82 | FleetCor Technologies, Inc.(a) | 20,423 | ||||||
88 | Gartner, Inc.(a) | 26,176 | ||||||
280 | Global Payments, Inc. | 38,315 | ||||||
897 | International Business Machines Corporation | 116,628 | ||||||
80 | Jack Henry & Associates, Inc. | 15,764 |
See accompanying notes to financial statements.
18
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
TECHNOLOGY SERVICES - 4.5% (Continued) | ||||||||
179 | Kyndryl Holdings, Inc.(a) | $ | 2,348 | |||||
124 | Leidos Holdings, Inc. | 13,394 | ||||||
39 | MarketAxess Holdings, Inc. | 13,268 | ||||||
855 | Mastercard, Inc., Class A | 305,561 | ||||||
166 | Moodys Corporation | 56,010 | ||||||
83 | MSCI, Inc. | 41,739 | ||||||
344 | Nielsen Holdings plc | 9,371 | ||||||
311 | Paychex, Inc. | 42,442 | ||||||
1,093 | PayPal Holdings, Inc.(a) | 126,405 | ||||||
294 | S&P Global, Inc. | 120,589 | ||||||
170 | Verisk Analytics, Inc. | 36,487 | ||||||
1,637 | Visa, Inc., Class A | 363,038 | ||||||
411 | Western Union Company (The) | 7,702 | ||||||
1,916,283 | ||||||||
TELECOMMUNICATIONS - 1.0% | ||||||||
7,017 | AT&T, Inc. | 165,812 | ||||||
1,036 | Lumen Technologies, Inc. | 11,676 | ||||||
424 | T-Mobile US, Inc.(a) | 54,420 | ||||||
3,977 | Verizon Communications, Inc. | 202,588 | ||||||
434,496 | ||||||||
TIMBER REIT - 0.1% | ||||||||
729 | Weyerhaeuser Company | 27,629 | ||||||
TOBACCO & CANNABIS - 0.6% | ||||||||
1,895 | Altria Group, Inc. | 99,014 | ||||||
1,586 | Philip Morris International, Inc. | 148,989 | ||||||
248,003 | ||||||||
TRANSPORTATION & LOGISTICS - 1.7% | ||||||||
124 | Alaska Air Group, Inc.(a) | 7,193 | ||||||
442 | American Airlines Group, Inc.(a) | 8,067 | ||||||
282 | Canadian Pacific Railway Ltd. | 23,276 | ||||||
134 | CH Robinson Worldwide, Inc. | 14,433 | ||||||
2,331 | CSX Corporation | 87,296 | ||||||
620 | Delta Air Lines, Inc.(a) | 24,533 |
See accompanying notes to financial statements.
19
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
COMMON STOCKS — 89.1% (Continued) | ||||||||
TRANSPORTATION & LOGISTICS - 1.7% (Continued) | ||||||||
179 | Expeditors International of Washington, Inc. | $ | 18,466 | |||||
221 | FedEx Corporation | 51,137 | ||||||
89 | JB Hunt Transport Services, Inc. | 17,870 | ||||||
253 | Norfolk Southern Corporation | 72,161 | ||||||
94 | Old Dominion Freight Line, Inc. | 28,076 | ||||||
534 | Southwest Airlines Company(a) | 24,457 | ||||||
646 | Union Pacific Corporation | 176,494 | ||||||
244 | United Airlines Holdings, Inc.(a) | 11,312 | ||||||
706 | United Parcel Service, Inc., Class B | 151,409 | ||||||
716,180 | ||||||||
TRANSPORTATION EQUIPMENT - 0.2% | ||||||||
149 | Cummins, Inc. | 30,561 | ||||||
356 | PACCAR, Inc. | 31,354 | ||||||
178 | Westinghouse Air Brake Technologies Corporation | 17,118 | ||||||
79,033 | ||||||||
WHOLESALE - CONSUMER STAPLES - 0.2% | ||||||||
612 | Archer-Daniels-Midland Company | 55,239 | ||||||
526 | Sysco Corporation | 42,948 | ||||||
98,187 | ||||||||
WHOLESALE - DISCRETIONARY - 0.1% | ||||||||
176 | Copart, Inc.(a) | 22,083 | ||||||
268 | LKQ Corporation | 12,170 | ||||||
39 | Pool Corporation | 16,491 | ||||||
50,744 | ||||||||
TOTAL COMMON STOCKS (Cost $23,590,734) | 37,632,548 | |||||||
EXCHANGE-TRADED FUND — 2.7% | ||||||||
EQUITY - 2.7% | ||||||||
2,478 | SPDR S&P 500 ETF Trust | 1,119,164 | ||||||
TOTAL EXCHANGE-TRADED FUND (Cost $597,882) | 1,119,164 |
See accompanying notes to financial statements.
20
PERSIMMON LONG/SHORT FUND |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
March 31, 2022 |
Shares | Fair Value | |||||||
SHORT-TERM INVESTMENT — 6.0% | ||||||||
MONEY MARKET FUND - 6.0% | ||||||||
2,538,592 | First American Government Obligations Fund, Class X, 0.18% (Cost $2,538,592)(c) | $ | 2,538,592 | |||||
TOTAL INVESTMENTS - 97.8% (Cost $26,727,208) | $ | 41,290,304 | ||||||
OTHER ASSETS IN EXCESS OF LIABILITIES- 2.2% | 931,208 | |||||||
NET ASSETS - 100.0% | $ | 42,221,512 |
OPEN FUTURES CONTRACTS
Number of | Notional | Value
and Unrealized | ||||||||||||
Contracts | Open Short Futures Contracts | Expiration | Amount(d) | Appreciation | ||||||||||
34 | CME E-Mini Standard & Poors 500 Index Future | 06/17/2022 | $ | 7,702,275 | $ | 36,800 | ||||||||
TOTAL FUTURES CONTRACTS |
ADR | - American Depositary Receipt |
ETF | - Exchange-Traded Fund |
LTD | - Limited Company |
MSCI | - Morgan Stanley Capital International |
NV | - Naamioze Vennootschap |
PLC | - Public Limited Company |
REIT | - Real Estate Investment Trust |
SPDR | - Standard & Poors Depositary Receipt |
(a) | Non-income producing security. |
(b) | Percentage rounds to less than 0.1%. |
(c) | Rate disclosed is the seven day effective yield as of March 31, 2022. |
(d) | The amounts shown are the underlying reference notional amounts to stock exchange indices and equities upon which the fair value of the futures contracts held by the Fund are based. Notional values do not represent the current fair value of, and are not necessarily indicative of the future cash flows of the Funds futures contracts. Further, the underlying price changes in relation to the variables specified by the notional values affects the fair value of these derivative financial instruments. The notional values as set forth within this schedule do not purport to represent economic value at risk to the Fund. |
See accompanying notes to financial statements.
21
Persimmon Long/Short Fund |
STATEMENT OF ASSETS AND LIABILITIES (Unaudited) |
March 31, 2022 |
ASSETS | ||||
Investment securities, at cost | $ | 26,727,208 | ||
Investment securities, at fair value | $ | 41,290,304 | ||
Segregated cash at broker | 946,410 | |||
Dividends and interest receivable | 27,249 | |||
Unrealized appreciation on futures contracts | 36,800 | |||
Prepaid expenses | 6,488 | |||
TOTAL ASSETS | 42,307,251 | |||
LIABILITIES | ||||
Investment advisory fees payable, net | 43,831 | |||
Payable to related parties | 32,927 | |||
Accrued expenses and other liabilities | 8,981 | |||
TOTAL LIABILITIES | 85,739 | |||
NET ASSETS | $ | 42,221,512 | ||
COMPOSITION OF NET ASSETS: | ||||
Paid in capital | $ | 32,585,457 | ||
Accumulated Earnings | 9,636,055 | |||
NET ASSETS | $ | 42,221,512 | ||
NET ASSET VALUE PER SHARE: | ||||
Class I Shares: | ||||
Net Assets | $ | 42,221,512 | ||
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized) | 3,455,692 | |||
Net asset value (Net Assets ÷ Shares Outstanding), offering price and redemption price per share (a) | $ | 12.22 |
(a) | The Fund will impose a 1.00% redemption fee for any redemptions of Fund shares occurring within 60 days of purchase. |
See accompanying notes to financial statements.
22
Persimmon Long/Short Fund |
STATEMENT OF OPERATIONS (Unaudited) |
For the Six Months Ended March 31, 2022 |
INVESTMENT INCOME | ||||
Dividends | $ | 280,375 | ||
Interest | 407 | |||
TOTAL INVESTMENT INCOME | 280,782 | |||
EXPENSES | ||||
Advisory fees | 260,118 | |||
Administrative services fees | 45,568 | |||
Transfer agent fees | 24,694 | |||
Accounting services fees | 16,572 | |||
Broker margin interest expense | 11,177 | |||
Compliance officer fees | 10,871 | |||
Audit fees | 9,375 | |||
Legal fees | 7,673 | |||
Trustees fees and expenses | 7,320 | |||
Printing and postage expenses | 5,984 | |||
Registration fees | 5,808 | |||
Custodian fees | 2,740 | |||
Third party administrative services fees | 182 | |||
Other expenses | 1,992 | |||
TOTAL EXPENSES | 410,074 | |||
NET INVESTMENT LOSS | (129,292 | ) | ||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||
Net realized gain (loss) from: | ||||
Investments | 10,906 | |||
Futures contracts | (543,895 | ) | ||
Net Realized Loss | (532,989 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 2,123,898 | |||
Futures contracts | (341,800 | ) | ||
Net Change in Unrealized Appreciation | 1,782,098 | |||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 1,249,109 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,119,817 |
See accompanying notes to financial statements.
23
Persimmon Long/Short Fund |
STATEMENTS OF CHANGES IN NET ASSETS |
For the | For the | |||||||
Six Months Ended | Year Ended | |||||||
March 31, 2022 | September 30, 2021 | |||||||
(Unaudited) | ||||||||
FROM OPERATIONS | ||||||||
Net investment loss | $ | (129,292 | ) | $ | (256,072 | ) | ||
Net realized loss from investments and futures contracts | (532,989 | ) | (3,108,459 | ) | ||||
Net change in unrealized appreciation on investments and futures contracts | 1,782,098 | 7,596,676 | ||||||
Net increase in net assets resulting from operations | 1,119,817 | 4,232,145 | ||||||
SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold: | ||||||||
Class I | 4,156,243 | 863,436 | ||||||
Payments for shares redeemed: | ||||||||
Class I | (433,027 | ) | (992,314 | ) | ||||
Net increase (decrease) from shares of beneficial interest transactions | 3,723,216 | (128,878 | ) | |||||
NET INCREASE IN NET ASSETS | 4,843,033 | 4,103,267 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 37,378,479 | 33,275,212 | ||||||
End of Period | $ | 42,221,512 | $ | 37,378,479 | ||||
SHARE ACTIVITY | ||||||||
Class I: | ||||||||
Shares Sold | 328,753 | 79,553 | ||||||
Shares Redeemed | (35,003 | ) | (87,820 | ) | ||||
Net increase (decrease) in shares of beneficial interest outstanding | 293,750 | (8,267 | ) |
See accompanying notes to financial statements.
24
Persimmon Long/Short Fund |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period |
Class I | ||||||||||||||||||||||||
Six Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
March 31, 2022 | September 30, 2021 | September 30, 2020 | September 30, 2019 | September 30, 2018 | September 30, 2017 | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.82 | $ | 10.50 | $ | 10.08 | $ | 11.18 | $ | 11.23 | $ | 10.41 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss (1) | (0.04 | ) | (0.08 | ) | (0.10 | ) | (0.13 | ) | (0.31 | ) | (0.28 | ) | ||||||||||||
Net realized and unrealized gain (loss) (2) | 0.44 | 1.40 | 0.64 | (0.63 | ) | 0.93 | 1.10 | |||||||||||||||||
Total from investment operations | 0.40 | 1.32 | 0.54 | (0.76 | ) | 0.62 | 0.82 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net realized gains | — | — | (0.12 | ) | (0.34 | ) | (0.67 | ) | — | |||||||||||||||
Total distributions | — | — | (0.12 | ) | (0.34 | ) | (0.67 | ) | — | |||||||||||||||
Net asset value, end of period | $ | 12.22 | $ | 11.82 | $ | 10.50 | $ | 10.08 | $ | 11.18 | $ | 11.23 | ||||||||||||
Total return (3) | 3.38 | % (8)(9) | 12.57 | % (8) | 5.47 | % | (6.72 | )% | 5.80 | % | 7.88 | % | ||||||||||||
Net assets, at end of period (000s) | $ | 42,222 | $ | 37,378 | $ | 33,275 | $ | 28,549 | $ | 31,633 | $ | 23,079 | ||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Ratio of gross expenses to average net assets before fee waiver/recapture (4)(6)(7) | 1.97 | % (10) | 2.07 | % | 2.44 | % | 2.85 | % | 3.88 | % | 4.17 | % | ||||||||||||
Ratio of net expenses to average net assets after fee waiver/recapture (6)(7) | 1.97 | % (10) | 2.15 | % | 2.57 | % | 2.90 | % | 3.69 | % | 3.86 | % | ||||||||||||
Ratio of net investment loss to average net assets before fee waiver/recapture (5)(7) | (0.62 | )% (10) | (0.62 | )% | (0.85 | )% | (1.20 | )% | (2.96 | )% | (2.97 | )% | ||||||||||||
Ratio of net investment loss to average net assets after fee waiver/recapture (5)(7) | (0.62 | )% (10) | (0.70 | )% | (0.98 | )% | (1.24 | )% | (2.78 | )% | (2.66 | )% | ||||||||||||
Portfolio Turnover Rate | 0 | % (9) | 6 | % | 227 | % | 326 | % | 263 | % | 86 | % |
(1) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period. |
(2) | Realized and unrealized gains (loss) per share in this caption are balancing amounts necessary to reconcile the change in net assets value per share for the period, and may not reconcile with aggregate gains and losses in the Statement of Operations due to timing of share transactions during the period. |
(3) | Total returns shown exclude the effect of applicable sales charges and redemption fees and assumes reinvestment of all distributions, if any. Total returns would have been lower absent the fee waiver. |
(4) | Represents the ratio of expenses to average net assets absent fee waivers and/or fees recaptured by the advisor. |
(5) | Recognition of net investment loss by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. |
(6) | Excluding interest expense and dividends on securities sold short, the following ratios would have been: |
Gross expenses to average net assets | 1.92 | % (10) | 2.01 | % | 2.36 | % | 2.53 | % | 2.93 | % | 3.09 | % | ||||||||||||
Net expenses to average net assets | 1.92 | % (10) | 2.09 | % | 2.49 | % | 2.58 | % | 2.75 | % | 2.78 | % |
(7) | Ratio does not include the expenses of other investment companies in which the Fund invests. |
(8) | Includes adjustments in accordance with accounting principles generally accepted in the United States and, consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
(9) | Not annualized. |
(10) | Annualized for periods less than one full year. |
See accompanying notes to financial statements.
25
Persimmon Long/Short Fund |
NOTES TO FINANCIAL STATEMENTS (Unaudited) |
March 31, 2022 |
1. | ORGANIZATION |
The Persimmon Long/Short Fund (the Fund) is a diversified series of shares of beneficial interest of Northern Lights Fund Trust III (the Trust), a statutory trust organized under the laws of the State of Delaware on December 5, 2011, and registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The Fund commenced operations on December 31, 2012. The Fund seeks long-term capital appreciation.
The Fund offers Class I shares. Effective May 25, 2016, sales and operations of Class A shares of the Fund were suspended. A principal of the investment advisor solely held the Class A shares for the period from October 1, 2015 to May 25, 2016. The Fund may recommence offering and operation of Class A shares of the Fund in the future. Class I shares of the Fund are sold at Net Asset Value (NAV) without an initial sales charge and are not subject to 12b-1 distribution fees. Class I shares are subject to a 1.00% redemption fee on redemptions made within 60 days of the original purchase.
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
All investments in securities are recorded at their estimated fair values. The following is a summary of significant accounting policies followed by the Fund in preparation of its financial statements. The policies are in conformity with U.S. generally accepted accounting principles (GAAP). The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period ended. Actual results could differ from those estimates. The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies, including FASB Accounting Standards Update (ASU) 2013-08.
Securities Valuation – Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price (NOCP). If the NOCP is not available, such securities shall be valued at the last sale price on the day of valuation, or if there has been no sale on such day, at the mean between the current bid and ask prices. Option contracts listed on a securities exchange or board of trade (not including Index Options contracts) for which market quotations are readily available shall be valued at the last quoted sales price or, in the absence of a sale, at the mean between the current bid and ask prices on the valuation date. Index Options listed on a securities exchange or board of trade for which market quotations are readily available shall be valued at the mean between the current bid and ask prices on the valuation date. The independent pricing service does not distinguish between smaller-sized bond positions known as odd lots and larger institutional- sized bond positions known as round lots. The Fund may fair value a particular bond if the advisor does not believe that the round lot value provided by the independent pricing service reflects fair value of the Funds holding. Investments in open-end investment companies are valued at net asset value. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase may be valued at amortized cost, which approximates fair value.
The Fund may hold securities, such as private investments, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities will be valued using the fair value procedures approved by the Trusts Board of Trustees (the Board). The Board has delegated execution of these procedures to a fair value committee composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) advisor. The committee may also enlist third party consultants such as a valuation specialist at a public accounting firm, valuation consultant, or financial officer of a security issuer on an as-needed basis to assist in determining a security -specific fair value. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.
Valuation of Fund of Funds – The Fund may invest in portfolios of open-end or closed-end investment companies (the Underlying Funds). The Underlying Funds value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value to the methods established by the board of directors of the Underlying Funds.
26
Persimmon Long/Short Fund |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
March 31, 2022 |
Open-end investment companies are valued at their respective net asset values as reported by such investment companies. The shares of many closed -end investment companies, after their initial public offering, frequently trade at a price per share, which is different than the net asset value per share. The difference represents a market premium or market discount of such shares. There can be no assurances that the market discount or market premium on shares of any closed-end investment company purchased by the Fund will not change.
Fair Valuation Process – As noted above, the fair value committee is composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) advisor. The applicable investments are valued collectively via inputs from each of these groups. For example, fair value determinations are required for the following securities: (i) securities for which market quotations are insufficient or not readily available on a particular business day (including securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source); (ii) securities for which, in the judgment of the advisor, the prices or values available do not represent the fair value of the instrument. Factors which may cause the advisor to make such a judgment include, but are not limited to, the following: only a bid price or an ask price is available; the spread between bid and ask prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; and (iv) securities with respect to which an event that will affect the value thereof has occurred (a significant event) since the closing prices were established on the principal exchange on which they are traded, but prior to the Funds calculation of its net asset value. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private placements or non-traded securities are valued via inputs from the advisor based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances). If the advisor is unable to obtain a current bid from such independent dealers or other independent parties, the fair value committee shall determine the fair value of such security using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of the Funds holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.
The Fund utilizes various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a fair value hierarchy and specifies that a valuation technique used to measure fair value shall minimize the use of unobservable inputs. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under U.S. GAAP are described below:
Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has the ability to access at the measurement date.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Funds own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available and may require significant management judgment or estimation.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
27
Persimmon Long/Short Fund |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
March 31, 2022 |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of March 31, 2022 for the Funds assets and liabilities measured at fair value:
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments * | ||||||||||||||||
Common Stocks | $ | 37,632,548 | $ | — | $ | — | $ | 37,632,548 | ||||||||
Exchange-Traded Fund | 1,119,164 | — | — | 1,119,164 | ||||||||||||
Short-Term Investment | 2,538,592 | — | — | 2,538,592 | ||||||||||||
Total | $ | 41,290,304 | $ | — | $ | — | $ | 41,290,304 | ||||||||
Derivatives* | ||||||||||||||||
Futures Contracts | $ | 36,800 | $ | — | $ | — | $ | 36,800 | ||||||||
Total | $ | 36,800 | $ | — | $ | — | $ | 36,800 |
* | Refer to the Schedule of Investments for industry classification. |
The Fund did not hold any Level 3 securities during the year. The were no transfers between levels during the period.
Security Transactions and Related Income – Security transactions are accounted for on a trade date basis. Interest income is recognized on an accrual basis. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
Dividends and Distributions to Shareholders – Dividends from net investment income are declared and distributed annually. Distributable net realized capital gains are declared and distributed annually. Dividends from net investment income and distributions from net realized gains are recorded on the ex-dividend date and determined in accordance with federal income tax regulations, which may differ from GAAP. These book/tax differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification.
Federal Income Taxes – It is the Funds policy to continue to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code, as amended, that are applicable to regulated investment companies and to distribute substantially all of its taxable income and net realized gains to shareholders. In addition, the Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision has been recorded.
The Fund recognizes the tax benefits of uncertain tax positions only where the position is more likely than not to be sustained assuming examination by tax authorities. Management has analyzed the Funds tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions expected to be taken on returns filed for open tax years 2019-2021 or expected to be taken in the Funds 2022 returns. The Fund identifies its major tax jurisdictions as U.S. federal, Ohio, and foreign jurisdictions where the Fund makes significant investments; however the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
Expenses – Expenses of the Trust that are directly identifiable to a specific fund are charged to that fund. Expenses, which are not readily identifiable to a specific fund, are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative sizes of the funds in the Trust.
28
Persimmon Long/Short Fund |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
March 31, 2022 |
Indemnification – The Trust indemnifies its officers and trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Funds maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the risk of loss due to these warranties and indemnities appears to be remote.
3. | INVESTMENT TRANSACTIONS AND ASSOCIATED RISKS |
For the six months ended March 31, 2022, cost of purchases and proceeds from sales of portfolio securities, other than short sales and short-term investments amounted to $918 and $4,619, respectively.
Futures Contracts – The Fund may purchase or sell futures contracts to gain exposure to, or hedge against, changes in the value of equities, interest rates, foreign currencies or commodities. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral for the account of the broker (the Funds agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by marking to market on a daily basis to reflect the market value of the contracts at the end of each days trading. Variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. When the contracts are closed, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Funds basis in the contract. If the Fund was unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. The Fund segregates liquid securities having a value at least equal to the amount of the current obligation under any open futures contract. Risks may exceed amounts recognized in the statement of assets and liabilities. With futures, there is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchanges clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
Short Sales – A short sale is a transaction in which the Fund sells a security it does not own but has borrowed in anticipation that the market price of that security will decline. The Fund is obligated to replace the security borrowed by purchasing it on the open market at a later date. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss. Conversely, if the price declines upon replacing the borrowed security, the Fund will realize a gain.
Option Transactions – Options are derivative financial instruments that give the buyer, in exchange for a premium payment, the right, but not the obligation, to either purchase from (call option) or sell to (put option) the writer a specified underlying instrument at a specified price on or before a specified date. The Fund enters into option contracts to meet the requirements of its trading activities.
The risk in writing a call option is that the Fund may incur a loss if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist.
Put options are purchased to hedge against a decline in the value of securities held in the Funds portfolio. If such a decline occurs, the put options will permit the Fund to sell the securities underlying such options at the exercise price, or to close out the options at a profit. The Fund may purchase call options as a temporary substitute for the purchase of individual securities, which then could be purchased in orderly fashion. The premium paid for a put or call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises or declines sufficiently, the option may expire worthless to the Fund. In addition, in the event that the price of the security in connection with which an option was purchased moves in a direction favorable to the Fund, the benefits realized by the Fund as a result of such favorable movement will be reduced by the amount of the premium paid for the option and related transaction costs. Written and purchased options are non-income producing securities. With purchased options, there is minimal counterparty credit risk to the Fund since these options are exchange traded and the exchanges clearinghouse, as counterparty to all exchange traded options, guarantees against a possible default. The Fund did not trade any options during the period October 1, 2021 through March 31, 2022.
29
Persimmon Long/Short Fund |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
March 31, 2022 |
Segregated Cash at Broker – The Fund, as of March 31, 2022, has $946,410 of cash on hand at the prime broker representing the proceeds of securities sold short. Withdrawal of these amounts is restricted based on the level of short trading in the Fund.
Impact of Derivatives on the Statement of Assets and Liabilities and Statement of Operations
The derivative instruments outstanding, as of March 31, 2022, as disclosed in the Portfolio of Investments and Statement of Assets and Liabilities, and the amounts of realized and changes in unrealized gains and losses on derivative instruments during the period, as disclosed in the Statement of Operations, serve as indicators of the volume of derivative activity for the Fund.
The following is a summary of the location of derivative investments on the Funds Statement of Assets and Liabilities for the six months ended March 31, 2022:
Derivative | Risk Type | Statement of Assets and Liabilities | Fair Value | |||||
Futures contracts | Equity | Unrealized appreciation futures contracts | $ | 36,800 | ||||
The following is a summary of the location of derivative investments on the Funds Statement of Operations for the six months ended March 31, 2022:
Derivative Investment Type | Location of Gain/Loss on Derivative |
Equity | Net realized loss on futures contracts |
Net change in unrealized depreciation on futures contracts | |
The following is a summary of the Funds derivative investments activity recognized in the Statement of Operations categorized by primary risk exposure for the six months ended March 31, 2022:
Change in unrealized | ||||||||||
Realized loss on | depreciation on futures | |||||||||
Derivative Investment Type | Primary Risk Exposure | futures contracts | contracts | |||||||
Future contracts | Equity | $ | (543,895 | ) | $ | (341,800 | ) | |||
There were no offsetting arrangements as of March 31, 2022.
4. | INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES |
Persimmon Capital Management L.P. served as the Funds investment advisor (the Advisor). Pursuant to an advisory agreement with the Trust, on behalf of the Fund, the Advisor, under the oversight of the Board, directs the daily operations of the Fund and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Advisor, the Fund pays the Advisor a management fee computed and accrued daily and paid monthly, at an annual rate of 1.25% of the average daily net assets. Prior to January 1, 2021, the Fund paid the Advisor at an annual rate of 1.75% of the Funds average daily net assets. For the six months ended March 31, 2022, the advisory fees incurred by the Fund amounted to $260,118. On September 7, 2021, the Board approved a new investment advisor agreement between the Fund and Dakota Wealth Management, LLC. (Subsequent Advisor) in anticipation of a proxy vote set to close in Quarter 4 of 2021. Under the new advisor agreement there were no changes to the advisor fee or operating expense limitation.
The Advisor has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until at least January 31, 2023, to ensure that Total Annual Fund Operating Expenses (exclusive of any front- end or contingent deferred loads, brokerage fees and commissions, acquired fund fees and expenses; borrowing costs (such as interest and dividend expenses on securities sold short); taxes; expenses incurred in connection with any merger or reorganization; and extraordinary expenses (such as
30
Persimmon Long/Short Fund |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
March 31, 2022 |
litigation expenses, which may include indemnification of Fund officers and Trustees, and contractual indemnification of Fund service providers (other than the Advisor) will not exceed 1.99% of the daily average net assets attributable to Class I shares. Prior to January 1, 2021, the Advisor contractually agreed to waive all or part of its advisory fees or absorb expenses so that the total annual operating expenses did not exceed 2.49% of the Funds average daily net assets. The Advisor may seek reimbursement only for fees waived or expenses paid by it during the prior three years; provided, however, that such fees and expenses may only be reimbursed to the extent they were waived or paid after the date of the waiver agreement (or any similar agreement). Reimbursements will only be sought if total expenses remain below the expenses limitation in place now or at the time of waiver or reimbursement. The Board may terminate this expense reimbursement arrangement at any time. For the six months ended March 31, 2022, the Advisor did not recapture or reimburse any expenses. There are no future amounts eligible for recapture in future periods.
Northern Lights Distributors, LLC (the Distributor) acts as the Funds principal underwriter in the continuous public offering of the Funds Class I shares. During the six months ended March 31, 2022, the Distributor did not receive any underwriting commissions for sales of Class I shares.
In addition, certain affiliates of the Distributor provide ancillary services to the Fund as follows:
Ultimus Fund Solutions, LLC (UFS)
UFS, an affiliate of the Distributor, provides administration, fund accounting, and transfer agent services to the Trust. Pursuant to separate servicing agreements with UFS, the Fund pays UFS customary fees for providing administration, fund accounting and transfer agency services to the Fund. Certain officers of the Trust are also officers of UFS, and are not paid any fees directly by the Fund for serving in such capacities.
Northern Lights Compliance Services, LLC (NLCS)
NLCS, an affiliate of UFS and the Distributor, provides a chief compliance officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Fund.
Blu Giant, LLC (Blu Giant)
Blu Giant, an affiliate of UFS and the Distributor, management services for the Fund on an ad-hoc basis. fees from the Fund. provides EDGAR conversion and filing services as well as print For the provision of these services, Blu Giant receives customary
5. | AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION – TAX BASIS |
The identified cost of investments in securities owned by the Fund for federal income tax purposes, and its respective gross unrealized appreciation and depreciation at March 31, 2022, are as follows:
Cost for Federal Tax purposes | $ | 26,719,959 | ||
Unrealized Appreciation | 14,804,273 | |||
Unrealized Depreciation | (233,928 | ) | ||
Tax Net Unrealized Appreciation | $ | 14,570,345 | ||
6. | DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL |
The tax character of fund distributions paid for the years ended September 30, 2021 and September 30, 2020 was as follows:
Fiscal Year Ended | Fiscal Year Ended | |||||||
September 30, 2021 | September 30, 2020 | |||||||
Ordinary Income | $ | — | $ | — | ||||
Long-Term Capital Gain | — | 351,118 | ||||||
Return of Capital | — | 96 | ||||||
$ | — | $ | 351,214 |
31
Persimmon Long/Short Fund |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
March 31, 2022 |
As of September 30, 2021, the components of accumulated earnings/(deficit) on a tax basis were as follows:
Undistributed | Undistributed | Post October Loss | Capital Loss | Other | Unrealized | Total | ||||||||||||||||||||
Ordinary | Long-Term | and | Carry | Book/Tax | Appreciation/ | Accumulated | ||||||||||||||||||||
Income | Gains | Late Year Loss | Forwards | Differences | (Depreciation) | Earnings/(Deficits) | ||||||||||||||||||||
$ | — | $ | — | $ | (3,394,908 | ) | $ | (535,301 | ) | $ | — | $ | 12,446,447 | $ | 8,516,238 | |||||||||||
The difference between book basis and tax basis accumulated net investment losses, accumulated net realized gain (loss), and unrealized appreciation from investments is primarily attributable to the tax deferral of losses on wash sales, mark-to-market on open Section 1256 futures contracts, adjustments for real estate investment trusts and C-Corporation return of capital distributions.
Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Fund incurred and elected to defer such late year losses of $184,540.
Capital losses incurred after October 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Fund incurred and elected to defer such capital losses of $3,210,368.
At September 30, 2021, the Fund had capital loss carry forwards (CLCF) for federal income tax purposes available to offset future capital gains, as follows:
Non-Expiring | Non-Expiring | |||||||||||||
Short-Term | Long-Term | Total | CLCF Utilized | |||||||||||
$ | 535,301 | $ | — | $ | 535,301 | $ | — | |||||||
Permanent book and tax differences, primarily attributable to the book/tax basis treatment of net operating losses and tax adjustments for prior year tax returns, resulted in reclassification for the year ended September 30, 2021 as follows:
Accumulated | ||||||
Paid in Capital | Earning/(Losses) | |||||
$ | (270,064 | ) | $ | 270,064 | ||
7. | CONTROL OWNERSHIP |
The beneficial ownership, either directly or indirectly, of 25% or more of the outstanding shares of a fund creates a presumption of control of the fund under Section 2(a)(9) of the 1940 Act. As of March 31, 2022, Charles Schwab was the record owner of 28.25% of the outstanding shares and Pershing was the record owners of 71.75%.
8. | NEW ACCOUNTING PRONOUNCEMENTS |
In October 2020, the Securities and Exchange Commission (SEC) adopted new regulations governing the use of derivative by registered investment companies (Rule 18f-4). Rule 18f-4 will impose limits on the amount of derivatives a Fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, and require funds whose use of derivatives is greater than a limited specified amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager. Funds will be required to comply with Rule 18f-4 by August 19, 2022. It is not currently clear what impact, if any, Rule 18f-4 will have on the availability, liquidity or performance of derivatives. Management is currently evaluating the potential impact of Rule 18f-4 on the Funds. When fully implemented, Rule 18f-4 may require changes in how a Fund uses derivatives, adversely affect the Funds performance and increase costs related to the Funds use of derivatives.
32
Persimmon Long/Short Fund |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
March 31, 2022 |
9. | SUBSEQUENT EVENTS |
Subsequent events after the date of the Statement of Assets and Liabilities have been evaluated through the date the financial statements were issued. Management has determined that no events or transactions occurred requiring adjustment or disclosure in the financial statements other than the following:
Effective October 15, 2021, shareholders of the Fund approved Dakota Wealth, LLC (Dakota) as adviser to the Fund. There was no change in the Advisory Fee or Operating Expense Limitation Agreement in relation to this change of control.
33
Persimmon Long/Short Fund |
EXPENSE EXAMPLES (Unaudited) |
March 31, 2022 |
As a shareholder of the Persimmon Long/Short Fund, you incur two types of costs: (1) transaction costs, including redemption fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Persimmon Long Short/Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the period beginning October 1, 2021 and ended March 31, 2022.
Table 1. Actual Expenses
Table 1 Actual Expenses provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading Expenses Paid During Period.
Table 2. Hypothetical Expenses
Table 2 Hypothetical Expenses provides information about hypothetical account values and hypothetical expenses based on the Persimmon Long Short/Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or redemption fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Actual Expenses | Annualized Expense Ratio ** 10/1/2021 - 3/31/2022 |
Beginning Account Value 10/1/2021 |
Ending
Account Value 3/31/2022 |
Expenses
Paid During Period 10/1/2021 - 3/31/2022 |
Class I | 1.92% | $1,000.00 | $1,033.00 | $9.71 |
Hypothetical Expenses | Annualized Expense Ratio ** 10/1/2021 - 3/31/2022 |
Beginning Account Value 10/1/2021 |
Ending
Account Value 3/31/2022 |
Expenses
Paid During Period * 10/1/2021 - 3/31/2022 |
Class I | 1.92% | $1,000.00 | $1,015.38 | $9.62 |
* | Expenses are equal to the Funds annualized expense ratio, multiplied by the number of days in the period (182) divided by the number of days in the fiscal year (365). |
** | Annualized expense ratio does not include interest expense or dividend expense. |
34
Persimmon Long/Short Fund |
SUPPLEMENTAL INFORMATION (Unaudited) |
March 31, 2022 |
SHAREHOLDER MEETING
The Board held a Special Meeting of the Shareholders of the Fund on October 15, 2021 for the purpose of approving a new investment advisory agreement with Dakota Wealth, LLC, the Funds proposed new investment adviser (the Investment Advisory Agreement).
At the close of business September 3, 2021, the record date for the Special Meeting of Shareholders, there were 3,161,943 outstanding shares of beneficial interest of the Fund.
Accordingly, shares represented in person and by proxy at the Special Meeting equaled 73.98% of the outstanding shares of the Fund. Therefore, a quorum was present for the Fund
With respect to approval of the Investment Advisory Agreement the following votes were cast:
For Approval | Against Approval | Abstained |
2,339,348 | 0 | 0 |
35
PRIVACY NOTICE
Rev. February 2014
FACTS | WHAT DOES NORTHERN LIGHTS FUND TRUST III DO WITH YOUR PERSONAL INFORMATION? | |||
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | |||
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: | |||
■ | Social Security number | ■ | Purchase History | |
■ | Assets | ■ | Account Balances | |
■ | Retirement Assets | ■ | Account Transactions | |
■ | Transaction History | ■ | Wire Transfer Instructions | |
■ | Checking Account Information | |||
When you are no longer our customer, we continue to share your information as described in this notice. | ||||
How? | All financial companies need to share customers personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers personal information; the reasons Northern Lights Fund Trust III chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does
Northern Lights Fund Trust III share? |
Can
you limit this sharing? |
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
Yes | No |
For our marketing purposes – to offer our products and services to you |
No | We dont share |
For joint marketing with other financial companies | No | We dont share |
For our affiliates everyday business purposes – information about your transactions and experiences |
No | We dont share |
For our affiliates everyday business purposes – information about your creditworthiness |
No | We dont share |
For nonaffiliates to market to you | No | We dont share |
Questions? | Call (402) 493-4603 | ||||
36
Who we are | |||||
Who is providing this notice?
|
Northern Lights Fund Trust III | ||||
What we do | |||||
How does Northern Lights Fund Trust III protect my personal information? |
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information. | ||||
How does Northern Lights Fund Trust III collect my personal information? |
We collect your personal information, for example, when you
■ Open an account
■ Provide account information
■ Give us your contact information
■ Make deposits or withdrawals from your account
■ Make a wire transfer
■ Tell us where to send the money
■ Tells us who receives the money
■ Show your government-issued ID
■ Show your drivers license
We also collect your personal information from other companies. | ||||
Why cant I limit all sharing? |
Federal law gives you the right to limit only ■ Sharing for affiliates everyday business purposes – information about your creditworthiness ■ Affiliates from using your information to market to you
■ Sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. | ||||
Definitions | |||||
Affiliates |
Companies related by common ownership or control. They can be financial and nonfinancial companies.
■ Northern Lights Fund Trust III does not share with our affiliates. | ||||
Nonaffiliates |
Companies not related by common ownership or control. They can be financial and nonfinancial companies ■ Northern Lights Fund Trust III does not share with nonaffiliates so they can market to you. | ||||
Joint marketing |
A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
■ Northern Lights Fund Trust III doesnt jointly market. | ||||
37
PROXY VOTING POLICY
Information regarding how the Fund voted proxies relating to portfolio securities for the most recent twelve month period ended June 30 as well as a description of the policies and procedures that the Fund uses to determine how to vote proxies is available without charge, upon request, by calling 1-855-233-8300 or by referring to the Security and Exchange Commissions (SEC) website at http://www.sec.gov.
PORTFOLIO HOLDINGS
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Form N-PORT is available on the SECs website at http://www.sec.gov. The information on Form N-PORT is available without charge, upon request, by calling 1-855-233-8300.
INVESTMENT ADVISOR |
Dakota Wealth Management |
1777 Sentry Parkway West |
VEVA 14, Suite 102 |
Blue Bell, PA 19422 |
ADMINISTRATOR |
Ultimus Fund Solutions, LLC |
225 Pictoria Drive, Suite 450 |
Cincinnati, OH 45246 |
Persimmon-SA22 |
Item 2. Code of Ethics. Not applicable.
Item 3. Audit Committee Financial Expert. Not applicable.
Item 4. Principal Accountant Fees and Services. Not applicable.
Item 5. Audit Committee of Listed Companies. Not applicable to open-end investment companies.
Item 6. Schedule of Investments. Schedule of investments in securities of unaffiliated issuers is included under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Funds. Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders. None
Item 11. Controls and Procedures.
(a) Based on an evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of filing date of this Form N-CSR, the principal executive officer and principal financial officer of the Registrant have concluded that the disclosure controls and procedures of the Registrant are reasonably designed to ensure that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported by the filing date, including that information required to be disclosed is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. (a) Not applicable to open-end investment companies.
(b) Not applicable to open-end investment companies.
Item 13. Exhibits.
(a)(1) Not applicable.
(a)(3) Not applicable for open-end investment companies.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Northern Lights Fund Trust III
By (Signature and Title)
/s/ Richard Malinowski
Richard Malinowski, Principal Executive Officer/President
Date 6/8/22
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)
/s/ Richard Malinowski
Richard Malinowski, Principal Executive Officer/President
Date 6/8/22
By (Signature and Title)
/s/ Brian Curley
Brian Curley, Principal Financial Officer/Treasurer
Date 6/8/22
CERTIFICATIONS
I, Richard Malinowski, certify that:
1. I have reviewed this report on Form N-CSR of the Persimmon Long/Short Fund (a series of Northern Lights Fund Trust III);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: 6/8/22 | /s/ Richard Malinowski | |
Richard Malinowski | ||
Principal Executive Officer/President |
I, Brian Curley, certify that:
1. I have reviewed this report on Form N-CSR of the Persimmon Long/Short Fund (a series of Northern Lights Fund Trust III);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: 6/8/22 | /s/ Brian Curley | |
Brian Curley | ||
Principal Financial Officer/Treasurer |
certification
Richard Malinowski, Principal Executive Officer/President, and Brian Curley Principal Financial Officer/Treasurer of Northern Lights Fund Trust III (the “Registrant”), certify to the best of my knowledge that:
1. The Registrant’s periodic report on Form N-CSR for the period ended March 31, 2022 (the “Form N-CSR”) fully complies with the requirements of Sections 15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Principal Executive Officer/President | Principal Financial Officer/Treasurer | |
Northern Lights Fund Trust III | Northern Lights Fund Trust III | |
/s/ Richard Malinowski | /s/ Brian Curley | |
Richard Malinowski | Brian Curley | |
Date: 6/8/22 | Date: 6/8/22 |
A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Northern Lights Funds Trust III and will be retained by Northern Lights Fund Trust III and furnished to the Securities and Exchange Commission (the “Commission”) or its staff upon request.
This certification is being furnished to the Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR filed with the Commission.
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